Market Roundup:
•US Nonfarm Productivity (QoQ) (Q3) 0.8%, 0.6% forecast , 0.3% previous
•US Unit Labor Costs (QoQ) (Q3) 2.4%,3.1% forecast , 3.5% previous
•US Crude Oil Inventories -5.187M,-3.305M forecast , -12.580M previous
•US Gasoline Inventories 5.320M, 2.707M forecast , 2.769M previous
•US Cushing Crude Oil Inventories -0.373M,-0.841M forecast , -0.415M previous
Looking Ahead - Economic Data (GMT )
•23:50 Japan GDP (QoQ) (Q3) -0.3% forecast , 1.1% previous
•23:50 Japan GDP External Demand (QoQ) (Q3) -0.7% previous
•23:50 Japan Nov Bank Lending (YoY) 2.7% previous
•23:50 Japan Oct Current Account n.s.a 0.623T forecast ,0.909T previous
•00:30 Australia Oct Trade Balance 12.100B forecast , 12.444B previous
•00:30 Australia Oct Exports (MoM) 7.0% previous
Looking Ahead - Events, Other Releases (GMT)
•No data ahead
Currency Summaries
EUR/USD: The euro gained against dollar on Wednesday after data showed Euro zone gross domestic product (GDP) grew by slightly . Euro zone gross domestic product (GDP) grew by slightly more than initially estimated, data from the European statistics agency Eurostat showed on Wednesday, with household spending and business investment propping up the economy.Eurostat said GDP growth in the third quarter was 0.3% in the 19-country euro area in the July-September period from the previous quarter and 2.3% year-on-year, above its flash estimates of 0.2% and 2.1% published in mid-November. Immediate resistance can be seen at 1.0559(23.6%fib), an upside break can trigger rise towards 1.0595(Dec 5th high).On the downside, immediate support is seen at 1.0442(9DMA), a break below could take the pair towards 1.0401(38.2%fib).
GBP/USD: The pound edged higher against the dollar on Wednesday and traded near its highest level in almost six months, as policymakers enter the quiet period ahead of crucial Bank of England, Federal Reserve and European Central Bank meetings. The BoE has raised rates from 0.1% to 3.0% in the current tightening cycle and markets are pricing in a peak in interest rates at around 4.6% next year, but officials have consistently pushed back on expectations for the terminal rate. The pound was up 0.3% against the dollar to $1.2207. It hit a near six-month high of $1.2345 on Monday. After hitting a record low of $1.0327 in late September, sterling has risen almost 18%, as the new government reversed most of the previous administration's mini-budget and the dollar eased as the Federal Reserve looks to slow the pace of rate hikes. Immediate resistance can be seen at 1.2275( 23.6%fib), an upside break can trigger rise towards 1.2338(Dec 5th high).On the downside, immediate support is seen at 1.2119(5DMA), a break below could take the pair towards 1.2000(Psychological leevl).
USD/CAD: The Canadian dollar was little changed against its broadly weaker U.S. counterpart on Wednesday, holding near a one-month low, as oil prices fell and the Bank of Canada signaled it was approaching the end of its interest rate hiking campaig . The Canadian dollar initially rallied after the BoC chose to lift interest rates by 50 basis points rather than 25 basis points as money markets had expected.The central bank eliminated the forward guidance it has used since it began cranking rates higher in March, dropping language that said they would have to rise further. The loonie was trading nearly unchanged at 1.3650 to the greenback. Immediate resistance can be seen at 1.3696 (23.6% fib), an upside break can trigger rise towards 1.3723 (Higher BB).On the downside, immediate support is seen at 1.3602 (38.2% fib), a break below could take the pair towards 1.3558 (9 DMA).
USD/JPY: The dollar gained against Japanese yen on Wednesday as greenback dipped amid concerns that rising interest rates could push the U.S. economy into recession. Some investors have been anticipating the Fed will soon slow its rate tightening pace, but recent upbeat U.S. employment, services and factory data has added to investor uncertainty over the Fed's policy outlook. The Fed is expected to raise rates again when it meets next week.A U.S. dollar index , which measures the greenback against a basket of currencies, was last down 0.4%. The dollar was down 0.5% against the Japanese yen. Strong resistance can be seen at 137.90(38.2%fib), an upside break can trigger rise towards 138.42(14DMA).On the downside, immediate support is seen at 135.97(38.2%fib), a break below could take the pair towards 133.94(23.6%fib).
Equities Recap
European stocks closed lower on Wednesday, extending recent losses, as concerns that the Federal Reserve will continue with its aggressive rate hikes hurt sentiment.
UK's benchmark FTSE 100 closed down by 0.43 percent, Germany's Dax ended down by 0.57 percent, France’s CAC finished the day down by 0. 47 percent.
The S&P 500 and Nasdaq closed down on Wednesday after a choppy session on Wall Street, as investors struggled to grasp a clear direction as they weighed how the Federal Reserve's monetary policy tightening might feed through into corporate America.
Dow Jones closed up by 0.01 percent, S&P 500 ended down by 1.19 percent, Nasdaq finished the day down by 0.51 percent.
Commodities Recap
Gold rose more than 1% on Wednesday, supported by a retreat in the dollar and U.S. bond yields as investors anticipate slower rate hikes from the Federal Reserve at its policy meeting next week.
Spot gold was up 1.1% at $1,789.67 per ounce, as of 1850 GMT. U.S. gold futures settled 0.9% higher at $1,798.
The price of oil fell to its lowest level this year on Wednesday, forfeiting all of the gains since Russia's invasion of Ukraine exacerbated the worst global energy supply crisis in decades.
Brent futures fell $2.18, or 2.8%, to $77.17 a barrel, settling comfortably below the year's previous closing low of $78.98 a barrel touched on the first day of 2022.
U.S. West Texas Intermediate crude fell $2.24, weakening further from Tuesday's close, which was already a yearly low, to $72.01 a barrel.
